Sovereign rating has become a topic of major concern for the international
financial community over the last two decades. This paper models ratings as combination
of two factors ? hard and soft factors. Economical factors are the hard factors whit there
statistical background. The political factors are the soft ones. It is very disturbing that the
soft factors are playing a major roll in the rating agencies analysis. I found out that there
isn?t any problems with the economical factors in the sovereign rating process, but in
the case of political factors there are some major problems. Questionnaires and
subjective answers in them may cause a falls sovereign rating process result. The
cooperation between the regulative organs and the rating agencies may result in the
future the losing of creditability for the sovereign country rating. Another concern is the
lack of competition on the rating market with only two global rating agencies occupying
80 % of the entire market. These fakts are calling for a change in the sovereign rating
markets. |